In today's episode we discuss questions people had in the WealthBuilders Facebook Community. Make sure to tune in if you had any worries or doubts in these uncertain times.
Coronavirus has rocked the financial markets in recent weeks, sending stock prices tumbling and reducing pension values all at once. For many people, this is a worrying time. Christian & Kevin went live inside the WealthBuiders Facebook community to answer questions from members, and offer thoughts and ideas on how to manage and leverage assets in these uncertain times.
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Unknown Speaker 0:01 The purpose of wealth talk is to educate, inform and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Unknown Speaker 0:19
Welcome to Episode 52 of wealth talk. My name is Christian Rodwell, the membership director of wealth builders and I'm joined today by our founder Mr. Kevin Whalen. Hi, Kevin.
Unknown Speaker 0:28
Hello, Chris has been interesting times rule and I'm sure everybody's completely fed up to the back teeth with what's going on with Corona virus. However, it's a new reality. So you know, good to have the opportunity to try and break through some of the some, some of the headlines, I guess, you know, this, if you tune into the headlines, you can be very fearful. And what I thought would be really useful is to to try and dispel the fear and know that we're going to get through this because we will Do and so it's best to be thinking about being proactive rather than reactive. There's a whole bunch of reactions out there right now, as you can see, Chris. So that productivity, choosing a response is the key to being smart and troubled times right now.
Unknown Speaker 1:17
Absolutely. Yeah, we we understand there's millions of Brits at the moment who are worried about their health, worried about their families, and just uncertain about the next few months, even the next couple of years even so, certainly some of those worries around money and finances, and within our community within the wealth builders Facebook group, we've had a number of questions and people sharing, commenting, and we wanted to address some of those last week, so we recorded a Facebook Live, and that went out a couple of days ago. And we thought we'd do something a little bit different for today's episode and replay that because it's, it was just under an hour. And we went through all of the Seven Pillars, didn't we, Kevin and we looked at what are some of them may be overrated. reactions that some people might make the snap decisions, and you know, some of the common mistakes and put people's minds at rest, hopefully with a few wise words.
Unknown Speaker 2:09
Yeah. And because it's a, it's a replay of something that was done live, it's obviously going to look and feel or sound rather a little different to normal. Because I think Chris, you've been, probably mentioned a few people who are asking questions and so on. So it will feel different, but hopefully see through that, see through the normal routine, because let's face it, everyone, you know, we're gonna have to change our routine, forever. And that's a big part of something to think about, actually, Chris, about changing and thinking about changing or routine because everything's different. We've got opportunities in that routine, to be thinking about time and getting some of that precious time back to do some things that we've been putting off or to invest some time and education and we'll do our best to bring as much education as possible, and and to choose and take time to carefully consider the response you want to make. And I plead you to do one thing, if nothing else, in times like now, don't let this happen, again, in terms of making you scared. Because if you can build your wealth, use the opportunity to build your wealth, then, you know, anything that comes at you in the future, you're built to deal with it at least financially, and the financial health of the economy and a people is just as important as the physical health because if the economy goes down, people become unhealthy. In a whole new different viruses, the virus of the mind, Chris, and this is the problem. I think it's affecting so many people headlines every single hour on the on the news, and I would say one of the routines to get into just tune into the news one today. You know, don't don't really be at the mercy of the next, the next the next, the next thought about how escalating. This is Just change your routine, get a new routine and listen to the news once a day and plug into some positive things, so you can take the time that you've got, hopefully, and you can choose a wise, sensible and wealth building response.
Unknown Speaker 4:16
And just before we go into the replay, and we are towards the end of March next week is the seven steps to wealth launch, which we've been planning for a long time, Kevin, and we've had, obviously some people asking us about this, has the plan changed in any way? We've decided to continue with the launch. And our reasons for that are that, you know, there's never really been a better time for people to start thinking about the long term now, as you rightly said, Just now, so that this doesn't happen again.
Unknown Speaker 4:46
Yeah, I mean, I say in the live, there'll be opportunities and there will be and I think everybody who's a regular listen to this, Chris will know and trust our integrity and We certainly had the launch of the seven steps, which is really the the sharpening the honing all of the good work that we did in Foundation, and really tried to make that more accessible and more available to lots more people. And I see no reason to change that plan because, in fact, we want more and more people to be financially well established to be moving through, you know, from security to independence in the coming few years. So that when these things happen, which they do periodically, you know, I'm a bit older than most people listening, I guess, Chris, and although I talk in the live about even going back further in history, and lots of experiences of plagues and other things, but you know, I've seen the crash. Obviously 2008, which was a big one, I seen, you know, the big interest rate hike in the 80s. When I remember how to mortgage at that time. I remember paying 15.4% on my mortgage. And almost all the money I was earning at that time was going to pay mortgage, you know. And so these things happen. And we must recognise that they do happen, and you choose the response to deal with it, you don't react to it, and then you move on. And there's always a new horizon to follow. And there's always something to look forward to. And I think we know that wealth building, and being independently wealthy is an important step and important outcome for everybody. I certainly see no reason why, you know, we shouldn't do anything about, you know, maintaining our current plan to help people enrol into that. And while there might be and I guess, Chris, some people will react negatively, and, and we might get less than we thought, but that doesn't matter. Because the more people we can teach, the better it is. So if it's less than we thought, that's good, you know, then we can give them more attention. And that's fine. And then the next intake you know, then the next intake This is a continuous plan quiz is not something we're going to stop
Unknown Speaker 7:00
No, absolutely no, the vision is very clear to help 50,000 people to achieve financial independence and we are on those first steps now founders last year have, you know, got that momentum now we're seeing some amazing successes with them, some of them who shared a few weeks ago on the podcast, and if anyone is interested, then the competition we've been running for the last month or so will come to a close this Friday. So the opportunity to win a free place on the seven steps to wealth programme for the next 12 months will end on Friday. And if you want to enter then head over to www dot wealth builders co.uk forward slash competition and I'd say
Unknown Speaker 7:41
I'd say one thing you know, we've all got more time. If you're listening to this, take two minutes you know, two minutes to save you two grand Why would you do that? And by the way, Chris, I just had a thought. And you know, I'm often a Brit free ranging. I think it might be worthwhile as I am reflect on the fact that when we all have a bit more time, one of the things we can do is really focus on eliminating wastage as well. I'm wondering whether, in addition to debits I think we can relaunch the debit video with I think you've already published it. But But can we give other people a link to that in case you've not heard about the debits if they've not taken time to reduce their debt, the cost of education, bills, insurance, tax and support costs, all covered in debits? creating money out of thin air, and that's a great thing to do. But also it might be worth Chris reaching into our foundation members, just to say what did you do in your debits because they all saved an average of between 800,000 pounds? What did they specifically do and then see if they can give something back to the new intake if you like, to help them find something more quickly as rather than being on a journey of self discovery.
Unknown Speaker 8:58
Sounds like a great idea. Absolutely. I think
Unknown Speaker 9:00
they'd love to do it. I think if they, if the foundation members thought I'd be helping you members, I think they'd be absolutely up for it. And that's a response to, you know, I would expect from the wealth builder community rather than the selfishness that I've seen. And, you know, it's another one of those things that makes my blood boil which things do regularly, don't they, when people are selfish, shouldn't profiteer just don't like it?
Unknown Speaker 9:24
Indeed, well, I'll make sure that all of the links to those things we've just discussed are in today's show notes for easy access to everyone listening. But let's, let's head on over to our replay of the q&a session from last week.
Unknown Speaker 9:38
feels like we're doing a podcast group. It's
Unknown Speaker 9:40
a bit like a podcast but a video version today. And just being present, of course, for everyone. In this time of coming together. We're really seeing that community spirit,
Unknown Speaker 9:50
aren't we at the moment, Kevin? I think we're seeing two things really. We've seen some disappointment. We've definitely seen a week of self interest in property. wringing around, and I'm glad to say that's been squashed. And not a good thing to see is it when people are just not behaving well and with integrity and ethics, you know, the spirit of our community is you know, we're seeing that blooming out now. And people helping each other people really looking to try and help people who are in difficult times because it is difficult time. So we're not going to try and say, there's a panacea here There isn't there's a pandemic. And when you get a pandemic, you everybody's gonna be affected. And that effect is affecting, you know, showing itself in different ways. It was interesting, I had a text this morning from one of my clients who said, you know, as I've been working with you guys now for well over a year, I've sorted myself I've worked out my pension, I've done all these good things. And now I'm actually feeling quite unfazed, not relaxed, not like you know on wonderfully enjoying any of this That's enough, but feeling unfazed. So the kind of connection I would say is the whole point of the whole wealth builder principles in the journey is so that you can be unfazed by these things. I mean, in fact, the whole concept of opposes was born out of the adversity. 10 years ago, we in the credit crunch when we saw the devastation of the stock market, and I realised how poorly as a financial professional the market was serving people and determined to bring a different solution. Now, 10 years later, that solution is now out. People are signing up to that and loving what it's doing for their life. But many people perhaps watching now maybe haven't taken that step yet. So we're going to have to go through the thought process, what do they do now? How do you choose the right response? Now? Definitely not reacting. Reacting is the wrong response. Taking time To choose a response, and what we could probably do is help people choose some responses that will be good for them, as opposed to reactions that will be bad for them. Because that's really important. But just get into the mindset that if
Unknown Speaker 12:16
10 years ago will last longer than that was really but 2008
Unknown Speaker 12:22
the whole concept was born
Unknown Speaker 12:25
out of adversity, we've got another piece of adversity now. And who knows when the next one will be? I mean, this pandemic, it's the kind of health professionals the experts help us believe it. Chris is not going to go away, you know, it goes away, and then it comes back. He goes away and comes back four sine waves of this. And so therefore, this could be with this for a very long time. And we could have a new reality. Yeah, you know, so you've got to be thinking now and become take time, reflect Press reset. take stock of all the things you've got in your life where you can add value. We'll talk about some of those. Okay, yeah. And, and get ready so that if the next one happens in 2030 you could be sending a text to say I'm completely unfazed. You know, I'm completely financially independent. I've got multiple streams of income flowing in from multiple pillars. And no matter what happens financially, I'm safe in my family financially safe, because as long as this physical health issue is a that's a huge, huge financial health issue here. So many people so many businesses, when the government says you know, in a TV announcement, you know, don't go to parks, don't go to clubs, don't go to restaurants. This is damaging, you know, financially for so many different individuals and businesses large and small and Financial repercussions have yet to play out across all of the different fields and to the property people. You've got tenants and businesses that are trading and trying to build their current income in their business. They don't have it yet. So it's just going to be affecting everybody. So if we're all affected by it, it's great to be sharing ideas together and watch that community spirit grow and not profiteering, not self promotion. This is not about promoting anything. This is just saying, well, let's listen to what people are feeling what kind of reactions that thinking and see whether those we can help them choose a maybe a better response as to how the different response or a slightly different perspective on the situation that would would help. Yeah, useful start.
Unknown Speaker 14:51
Yeah. Should we just dive into one question, and then that's good. Actually, if we could go through the Seven Pillars and maybe look at what are some
Unknown Speaker 14:58
of those overreactions? Some people might make now and try and you know, balance balance things out for banker. Yeah.
Unknown Speaker 15:05
Was there a one you want to start? Or should we just go from or go through all seven? Should
Unknown Speaker 15:11
we take a question first?
Unknown Speaker 15:13
Yeah, I'll go for question because Andy Quinn, you've posted a question so so just address this one quickly. And this is really around the pension pillar and a lot of people have been asking this question as a mocking and overlap of pensions and investments because for the most part, the pension pillar number two and investment pillar number three, are really predominantly invested in the stock market. So you know, the stock market look, we had a 40% drop in the stock market in 2008. Give or take a 30% drop in the stock market now, and understandably, people feel like they're taking a big hit. But the thing to remember about stock market is number one, it's a valuation at a snapshot point in time. So you don't crystallise any real, tangible physical loss unless you cash out at the market. And there are different ways that you can engage with the market so you don't cash out. One of those is particularly if the question was related to moving the money into your pension, like
Unknown Speaker 16:18
the SATs, for example, getting ready to transfer and yeah, funds have dropped in here. That's a question
Unknown Speaker 16:23
we've had probably, you know, 20 times 30 times now in the last week, you know, so I think Paul Brooks and I did a, an episode on this, but I'll kind of cover a couple of those things. So one of those is to recognise that when you've got money in the stock market is actually quite liquid. So you know, you can sell out anytime but also, what you can also do is kind of port it. So you can take the money, you know, in one place, and then you can just drop it into another pension. So lift it and drop it, which we call an in specie transfer. So, wherever it's possible, it's not always possible. We can check it for you. But whereas possible, you can just simply take the money, wherever it is now in some kind of funds track of funds or whatever, and then move it into wherever you want to move it. Typically that would be likely in our community to SAS, because SAS gives incredible power and flexibility. So people will do that. And then you got your money in doing exactly where it is. So your are, your money is in the market, and then you can reset and think, Well, what do I go from here? So nobody creates a SAS to hold exactly the same stops. You know, if I asked a question of 1000 of our SAS trustees and said, You know, when you bought a SAS when you created the SAS to be the owner of that, what do you want to do with the money and not one person? Not one? I said I'm just go back and buy the exact same survey. Yeah, I mean upon having one. So recognise that your intention not to not to be in the same place. Because if you think about the stock market generally, you know, if it has this sort of crashing, boom, every period of time, however long that period is, so let's pretend for the sake of an argument is every 10 years, why would you put yourself in harm's way every decade, you know, and pay fees for the privilege of doing that? You wouldn't it's not a way to build wealth, because there's no cash flow. It's a way to diversify your wealth once you've built it, it's not really the best way to build it unless you're doing it right from the start. And the reason why you do it from the start is because you can buy into the market every single month, and therefore you're buying in and the ups and the downs. So when prices go down, and you're buying regularly, you're buying units at the time when the markets up so that when they go up again, you're carrying forward, all of that money across. Now, if you're at a point where you're not doing that you made the decision to do a school exam. Then the in specie is an option and then take stock and reset go right What am I going to do? So you had an idea you had an opportunity in mind, but what was it? What was the ROI on opportunity? And that's a you know, typical SAS average us man's got 400 k give or take, right? So let's pretend it's okay. That your money's being hit, and it's gone down by 30 40% so so you got 150 second argument, you've lost 50 grand you go, Oh, I was me the world was crashing. Okay. But you can eat specie in movie 150. Now, when you sense, but you've got an opportunity, what's the opportunity, if the opportunity was, you know, to invest in a commercial property that costs you 100 grand, and then you could get leverage on that. So you've got another 50 grand of leverage. You're bringing leverage into play when you can't bring it into play, and stop. So you've got an opportunity to grow something. And if that growth will have the same volatility, if that growth will give you a yield, which is higher than you'd expect year on year and the stock market, then you can make yourself better off in the long term. And you don't have to crystallise all of that money. You just take the minimum amount, plus the leverage and use the rest of the stock market. If you needed to carry on with the whole thing would grow. But in the end, it may not be we could be depressed for a very long period of time. Now, we know the government trying to put many measures to stimulate the economy, lots of good things happening, you know, with helping businesses and so on, interest rates have gone down.
Unknown Speaker 20:44
Good news, if you're a borrower, bad news, if you're a saver, so you know, there's opportunity in both ways, and again, you don't get wealthy by saving money at naught point 1%. Get wealthy while making your money work. So in adversity, there are always opportunities and you just got to Choose the response you make not react to it. And definitely don't stop. Because if you stop and say, well, I'll just leave my money where it is. And I'll go back to what I'm doing. Guess what, you'll stop thinking you won't be moving forward. And wealth building is about moving and making some momentum changes, saying yes to something moving forward. So yes to something else, move forward. And you keep moving forward in that process of moving is personally financially and all of the other our wise we just did a podcast on your arise yesterday. Yeah. All 11 Our lives are actually touched by the fact that you're making progress. So you have to keep moving. And even if you stop and reset, nothing wrong with that, as long as the intention is to move at some point. Yeah.
Unknown Speaker 21:53
Yeah. And then again, as you know, example in the wheels, isn't it, it's turning over continually can turn
Unknown Speaker 21:59
in Learning, improving building wealth that way. Yeah, and nothing wrong with stopping. As long as it's not a halt, you know, just every journey, you know, just think about it in the vehicle, you're going to stop on the red light. Stop, but don't go backwards to where you can before the watch. Yeah. I hope that answers the first question for
Unknown Speaker 22:23
Andy. Yeah, hopefully it does. And if there's anything else drop a message and a few other questions I can see coming in. So we'll try and address these as perhaps we move through the pillars we obviously talk about the Seven Pillars of wealth, those of you that follow the podcast, you'll understand and pillar number one is is your home home capacity. What are some of the concerns or mistakes that people might be having at the moment or opportunities?
Unknown Speaker 22:48
Yeah, so obviously, look, when we've had a number of our students and members have abused their home as a source of heat Taking a spare room and using that money to generate an income seven and a half grand a year tax really useful, you might not want to do that right now because you want to associate disengage, and that's fine. But if you've got a period of time to stop, you could look at your home and say, Well, okay, what can I do with my home now that I could increase its capacity in the future? So I just mentioned mortgage rates have gone down. So what if your mortgage is gone down in cost? And what could you do? Well, you could actually focus on you don't want to focus on the stock market or you're not ready to build your wealth and other pillars yet, you could focus on eliminating the mortgage, reducing the mortgage by paying what you're paying now, or increasing your payment so that your mortgage goes down. So you're building your equity. So you're getting ready for another opportunity in the future of no opportunity presents itself right now. You could think about well, I like the idea to rent a room thing, but I don't actually Like the idea, absolutely. My house, is it possible to create an extension? Is it possible to re equip your home so you can work more from home? You know, so this process of the not quite isolation, but it could get to that. More and more people are beginning to see themselves kind of creating even their work environment. I mean, one of my clients the other day said, Look, I used to commute two hours a day now I'm working from home, I've got two apps, but every single day, so what can you do with that capacity? Is it time to get more education as a time to build more relationships and get used to technology that maybe you're not used to? So there's all sorts of you could talk or we're seeing a lot of people acting upon
Unknown Speaker 24:48
ideas now that have been germinating perhaps, and now it's, you know, a catalyst we talked about the catalyst or hidden and you mentioned on the Facebook Live we did a couple of weeks ago about this. history lessons, actually in times of, you know, a couple
Unknown Speaker 25:03
of days ago, not a couple weeks ago, it's
Unknown Speaker 25:06
been a crazy way.
Unknown Speaker 25:08
It's a bit like that, isn't it? Yeah, I did mention if you missed it, it's really quite relevant because you know, these things are these big capitalists, these big challenges occurred in history and continue to occur. And I gave the example of the 1600s just because it was relevant. For presentation I'm doing where I'll be quoting Shakespeare and was interesting as I was thinking about it, the you know, Shakespeare himself, and was forced through a plague to retreat from London where the theatres all closed in the early 1600s moved back to Stratford and wrote to my favourite place Antony, Cleopatra, and Macbeth. And so you took the time said, Well, I can't perform. What do I do is I build future capacity. IP, and row, two absolutely brilliant pieces of work, which then went on. So in reality, you know, they are ideas that perhaps wouldn't have come out of the fact if he was continued to perform. So every time something changes, there's an opportunity to Daniel Priestley did a great podcast today saying it's an opportunity to reinvent yourself. Yeah. And this is what we must do to reset, reset, reinvent and that there definitely is words, but I would say pressing reset is normal at a time like this, but I would say it's about taking stock. So if we take stock of our pillars, we'd say what, what do we want to do with our own if anything, pay down our mortgage, maybe think about an offset mortgage, so you've got more money available if an opportunity comes up, to do something in the home to increase your personal capacity by you know, we've just done a lot of work in our home so our kids can work from home you know, so big desks or laptops, you know, all of that all the right technology for them to do their work and increasingly, as well. And so what could you do there and get that working? Well? And also, could you build something? I think Mark Stokes has built a log cabin in the back for the bottom of the garden again to Yeah, to create that capacity in the home. Now, if he didn't choose to work from home, what he could do is rent that out. Yeah. So you can always generate something from from home. I don't know if there's anybody got a question on the home side, if not all, I can dive into the others.
Unknown Speaker 27:36
Yeah, I know. I think
Unknown Speaker 27:38
if there's any questions there around home capacity, put them put them in the comments, please. And I mean, a second pillar is pensions. Other we've talked about in spaceships or anything at the moment, I mean, people worrying people wondering what they should be doing.
Unknown Speaker 27:55
Look, you know, you've got to take stock of your pension. And don't forget the lost pensions. Now, I came across a spiritual reading the other day who have been married twice. And not that that's a problem, Chris. But when she was married twice, she had, you know, a maiden name and another married name, and she kind of lost control of the pension. So, you know, you just got to find these things. So you reconnect and you refund money, which is real money repatriated to where it belongs, and then make it work. So that's one. The other one is to take your time to explore the difference between the pension that's, you know, the traditional stock market pension where there's a hell of a lot of charges. So do the debits example for those who are familiar with debit or they're not?
Unknown Speaker 28:43
They could find a link to that. Well, actually, I
Unknown Speaker 28:45
posted a video in this very group this morning for debits. Yeah, yeah.
Unknown Speaker 28:50
You know, which is a really important thing to do once a year and if you didn't do it in some bar members, didn't do it or some of it. Yeah, not only a few right. One, so that we have enough hope but but if they're not people who are not members, then they could do their damage, right? Whether they're members or not, they could still take time to reflect and do something about things in their hands that they don't need in costs. They don't need people that are paying that they shouldn't be paying insurance they've got they shouldn't. We haven't, by the way, check your travel insurance online. Alaskan cruise, which is set up for June, this year, the Government of Canada have said, nobody's cruising until July. You know, that's, that's all gone now. So just make sure you've got all insurance in place. If you're a business owner, look at that relevant life insurance, which is often 50% cheaper, because you put it through your business or not first, and these things are not often known, and business owners, genuinely entrepreneurs and people who are busy. The reason they don't do this is Chris's time. So this has given us an opportunity to reclaim a little bit of our own Time, isn't it. So I go back to some of the key principles of wealth building, setting the foundation, right? And taking care of your roof, making sure you've done your wills, powers of attorney, shareholder agreement if you haven't been doing that many, many things in the roof, but in everything, even just take a little bit of time. And so that's what I'm going to do is spend one hour doing as much as you can do on that and just creating a bit of box time. So you do it and then consistently, you can measure activity, not building it right now, you're not going to be making great strides and measuring and increasing your recurring income. You can be measuring activity, starting to record what you're doing, and setting review dates for the next year.
Unknown Speaker 30:45
And I think some of the comments we've had over the last few days from our members is that whilst obviously no one could have expected and planned for this having a plan, a plan that has got five years, 10 years to it, which they've obviously been working with us on over the last 10 months or so at least provide some certainty. So when you, you don't deviate from the longer term vision of your wealth?
Unknown Speaker 31:13
Yeah, I mean, look, you
Unknown Speaker 31:17
we talked about the welcome the principles of the seven steps to growth, almost being a bit like a sat nav system, right. It is a system you can follow. But any sat nav system can send you down the wrong way on it. You know, I've been there as myself when I've gone to a golf course that I don't really know where I'm going, you follow the satin up and you find yourself down a road, which is about this thick and you can't get your car down it you know, so that happens. And all you got to do is reverse. And then you have to plan it. And course, if you're like me and don't have that in my car anymore, you got to go back out and see where you are and then you zero back in again. So it's the time it's To You know, take the helicopter view and go back out again and see what your plan is reconnect with your plan. And to know that if you do the right things, you will get to a place in five to seven years, seven to 10 years worst case worst case, being completely financially independent and nothing can damage that ever again. And that's the reality. You know, so just don't don't worry about it doesn't matter if your plan goes back a bit. Because all it's done is gone is taken you back a little bit but your mind has improved your time is improved. Maybe peretta you no longer having to go in work remember I think it was the man who negotiated
Unknown Speaker 32:46
It was called it rightly so called him the goat negotiated
Unknown Speaker 32:52
kind of work out. So now you don't need to negotiate
Unknown Speaker 32:57
your employees saying you go work from now. You have to be you can say that work not one thing. I quite like that. So you've got an opportunity to almost renegotiate. Now reading readiness for when this does Finally, clear up, then you can work from home because you've enjoyed it. You took a box and do good work, you know, you've got a job do great work so that the, you know, your managing team and the bosses. So again, you were great at doing that from Hong Kong. Yeah, it gives you more flexibility to be able
Unknown Speaker 33:29
to say a few more hellos to people who have jumped on Hello, Brendan. Good. See here, Catherine. Hello, Paul Lewis. Hello, Danny. Hello, Michelle Kemp. Hello to you and Chris Henry and Steve. Oh, hello. So Steve, you've got a question about property. But before that, let's cover off the investment. Hello, with one question that Matthew has asked here. So Matt's saying what's your outlook on moving stock market investments that this time to more tangible assets or currencies such as property, gold and silver
Unknown Speaker 34:00
Well, I think I've answered some of that in the previous point, but I'll make this point.
Unknown Speaker 34:06
You know, currently, whatever you're holding, everything is being depressed. And unless you've got something dramatically different, that's going to work differently to where your stock markets working, then there's no point changing anything until the opportunity comes up we talked about in specie, but that's really more about moving things into a SAS than anything else. So if you're holding money in ISIS and you're holding Money in Stocks, then just almost go back and have a look at your valuations because you will be getting valuations regularly. So go back and say because everything's about judging,
Unknown Speaker 34:42
almost a frame of reference, right? So if if you look back
Unknown Speaker 34:48
five years when you go back with a few statements, what was your valuation then and say you had 100 grand and right now you, you you that increased to 120 pronounced on that 210 is still better than you were before. So it's just like, like understanding where are you? And then create a new plan. So if you're where you are where you are you press reset you rebase your plan. So what I've got 100 grand now, and I don't have another plan to invest in any of the other entrepreneurial pillars, right? Just take that one and say, Well, what would I do? Well, I would start changing the way that I would work with my stock market investments moving forward. And I think there are three ways you can do that. Well, number one, is to is to almost imagine then, that what you want to do is to see your money increasing and locking in gates. So you don't just ride a roller coaster. And then you get on the same roller coaster and then it goes again, because you haven't learned anything. So there's a process I teach called, quite a bit of a mouthful. Bank counterpart like I'll say again, bank means So you've got 100 grand, you know, let's say we'll cover what you will do, you get to 120 you bank 10. And then you put it into work to do something else. So Matt mentioned gold. So gold is not an asset because doesn't provide cash flow, but is a hedge. So you could bank, the 10 lock into gold. So you secured some of the money, so you staircase your money. So if the market falls, you're not in that position. Again, we still got some of that money locked in to something else, which doesn't work in the same way as the stock market. So counter correlation means everything works in the same way. Counter correlation means it works in opposite way. Like, you know, ice creams and umbrellas, for example, but it's really simple. So I would think about that and start creating a set of rules. So for example, you know, if I'm dealing with somebody who's got Or go back to SAS again, because that's very common. They've got a half a million SAS. So we're okay, we need to create a set of rules. And I'll make a simple rule. Now, let's say we chunk that back. So half a million is 10, lots of 50 grand. So you make 10 decisions, and you'll never have more than 50 grand in one thing, it gives you an outstanding return. And you benchmark that against the risk that you're willing to take.
Unknown Speaker 37:25
Easy 10% do the same thing. So just start looking at stocks now chunk it down and say when it gets to a certain level, obviously you can reassess what you've got now, which is another option, which is to say, well look, I used to have my money in somebody designed that for you, or they bought it from you from a an advisor or you bought it through an employer or you know, you put it together somehow reset what that looks like. So you don't have to just simply hold what you've got, you can shift it so Already different now, you could shift the principle from if you've got high charges shifted to low cost trackers or ETS. So you're still in the market where you're just changing the costs moving forward. So the second point is changing cost base. So the only thing you can control the time like this, because you can't control the market never can teach prospects. So find ways to drive the cost base down. So that when you do pick up on or if it does go down, you're not compounding the loss in the stock market for the loss of fees. So if you can, you know, reassess whether you need guidance or not reassessed the difference between trackers and ETFs compared to more expensive funds, or again, the other thing, which is in that point number one I made about kind of creating a set of rules that you could protect your money. There's also if you get control of it, you can introduce the concept of stop losses. stop losses is where you kind of say, when it gets to a certain level, unlocking the value. So if the market falls, you know, you haven't, you haven't lost any money, or you set the stop loss slightly below where you are. So if the market tanks, you only lose a little, and you can create stop losses when you will control the funds. You can't create stop losses if you've got the money in a fund that somebody else owns or controls on your behalf. So get control of your money, then you can build a risk mitigation in so you don't let this happen again. And the third thing you can do so other than bank account, correlate building stop losses, reassess your charges and the cost of doing business in the stock market is you could change the way you build your stock market portfolio. So it's a reflection of who you are. So you don't have to go with a you know, some sort of broad spectrum of the market, you could choose to hold whatever you want to hold as a proportion of your total wealth in the market and then choose how you want to hold that. So you know, I have a very particular way that reflects my personality, the money I have in the market. So I do invest in the market, but I invest in a particular way that's private to me, and only people who give me a glass of red. Do I share that when we're talking? Right? So not on camera. But there are many ways you can do that. So if you've got a real strong view about impact in the world, if you've got a real strong view about green, or ethical, or you want to there's something that is a reflection of your personality and your views, and you can design your investments to reflect that. So take stock of who you are, make a decision around three ways you can do.
Unknown Speaker 40:46
Yeah, Matthews just replied back saying thanks so much agree with this strategy completely. And my concern is so many pension holders do not hedge their bets in the stock market by locking out positions or setting stop losses. And there's also mainstream Have awareness to where their money is sitting due to delegation of responsibility to fee based
Unknown Speaker 41:06
advisors.
Unknown Speaker 41:07
There we go. So we will be going out soapbox.
Unknown Speaker 41:09
We've been there before. Yeah. So Matt, thanks so much for your question. I really appreciate.
Unknown Speaker 41:15
Oh, by the way, I think Paul Lewis is on. Yes. So he's he's online. I think he was stuck in France is in lockdown. Right? Yeah. So he's locked down. So good luck for with. I mean, I don't know what it's like where you are. But I hope you've got a nice environment, plenty of food. And you can still get out on the slopes because you're not jumping in. He's not going to bump into people now. He's talking about Yeah. And of course, like for everybody, either watching now and families first and foremost, hope that you're okay. And not affected directly. modifiers you know, absolutely. So, and then hopefully you get home safely. And sometime soon. And we know a number of our clients are stuck in different countries and that must be a terrible place to be really not understanding joke about skiing. So I wasn't making light of anybody situation. But it was a good guy and he'd be smiling as I talk.
Unknown Speaker 42:09
Okay, so Steve, well, I guess property is the next. That's a big one. And we've got lots of our members in property. And we've seen Of course, there's a three month kind of break in in the mortgage payments, which will help to some degree, but we've got tenants and asking
Unknown Speaker 42:25
their landlords for breaks as well. Yeah. So look, you know, you're going to have, remember I said to those ethical people and as unethical people. So you will have some tenants who are genuinely affected by the corona virus and what their employer their business is doing. And I think it's appropriate if you're a landlord to do your best to help people because in the end, they don't pay. It's a lot more job to evict anybody from property and it costs money. So in any event, you have to help people. That's the key thing, but there'll be people take advantage of that one thing, they'll say, Well, you know, I wonder I want a break. Okay? And that's a more difficult one. So So again, I would probably be wanting to get evidence from tenants, you know, what is the situation for you and show it to me on some kind of an email or a trial. And then do your best to help people who can prove it and just, you know, put up with the fact that some people are going to try and take advantage of the situation. The other thing to do is to think about this again, you know, as you turn the wheel on your property portfolio, they're always different tenant types on that. So we've got blue collar tenants and some clients, others are students as a young professional, service, accommodation, hotels, care, homes, all sorts of different things. maybe think about looking as you reset for tenants that they've got a different cross section for you so you don't have to Same tenant type in every property, as you say properties the way you're building your portfolio and building your wealth, because one of anything is dangerous. One tenant type one strategy, one asset, one pillar is dangerous. Because as we can see these things can can be devastating if you're doing that, which is the reason why most businesses and most business owners struggle is they've got one business, not multiple businesses. And the key to success is multiple businesses, multiple streams of recurring income and different exposures to different types of customer different types in property. In terms of different types of tenant. That answer the question about, I know it's not easy, you can just shift that you just have to deal with the stuff that's going to happen. Or Steve's asking, you know, thoughts on the market. I mean, untasted leave the markets can have changed in some shape or form, but we just really don't know how long this will all go on for a while. I think my thoughts in general is they will be while they'll be people in pain, there'll be opportunities down the line because some people who will be in pain now don't want to be in pain ever again. You know, older landlords title landlords, you know, maybe people who just about making a living in their b&b or their small hotel, and they don't really want to do that anymore. There will be opportunities. And just Just so you know, you know, I'll be creating a group of people who've got, let's say, well funded, you know, intelligent people, like me and others who would get together and not not to prosper from other people's frustration. But to genuinely try and help people if they've got a situation where they want out there. If there's a good opportunity, there's an opportunity to, to bond. So I'll be looking at that and others will be looking at that. And those who want to look at that with us. You know, again, the other thing to do at a time like this is reflect on who you know, we've got relationships with, because the thing that which, which comes as a, as an overlay of all of the different pillars is the strength of leverage of relationship. So you're talking now to help them to hope for somebody. But the other point is, is who you know and what you know, and can help you not just overcome adversity, but to seek and find opportunities and take advantage of opportunities. So we want to help people who are struggling, but we also want to help people see opportunities and help them deliver on those and they won't be immediately obvious, but they will, they will come and when they come, you know, we need to be poised and ready for that. Which is the reason why I'm saying for those of you who've got money in the stock market, even if you sit on it, keep looking for the opportunities so that when the opportunities come You know, you can move towards opportunities. And that's all we can do in a time like this is reset where we are take stock of where we are, to keep looking forward for the opportunities and making sure that as we look for those opportunities, they're diversifying ourselves and our wealth away from just one single strategy.
Unknown Speaker 47:12
Steve's commented back actually just a point maybe to share that. Perhaps some people not realising that with the mortgage breaks that, you know, they're not free payment of the mortgage, delayed, but there's an interest that will accrue there. And so maybe worth mentioning that to attendance so that they understand as well. And David, john Sachi has just shared that he's had some of his tenants asked for three months deferred rent, and they'll repay it over the following six months, and they say they cannot apply for the grants as they are not classed as a small business. So he's thinking he could offer half the rent for the three months, so at least he's got some income coming in over that period.
Unknown Speaker 47:53
Well, you know, this is going to stretch, the imagination, the negotiation power, and the Clarity thought for everybody. And David and I spoke just the other day. And you mentioned this to me. And it's different. It's difficult because you don't know how many of those people are genuinely affected, and how many are looking just to take advantage of David's potential generosity. So I think it's about asking for proof and making them jump through a few hoops if you can. And if if in the end, somebody won't pay the worst place for any landlord to be in, is to have no rent, just like the worst place for any business to be is to have no customers. So while it's definitely not worth, you know, thinking about businesses, we'll get into business, I guess, but we definitely don't want to be discounting our way. But in some respects, you know, I understand the need to cash flow. And you don't want to be in a position where nobody pays you don't pay and you end up losing the property. Yeah. So it's a difficult one. And I know that so the perspective I'm getting is just Keep thinking about the balancing act of both sides, you know, deal with stuff you've got to deal with. But keep thinking about that there are opportunities and even if you're not ready for the opportunities, yet, there are other people who are and then maybe you can profit from an opportunity by making it available to somebody else. So songs about connection and leverageable clients. And if you can find an opportunity to profit from the opportunity to put a few thousand in your bank account, then that could be you know, a buffer zone for the future. And I would encourage everybody to create a substantial buffer wherever they have it. So that if we ever get into this situation again, you know, they've got that comfort while they're building their wealth, they don't have those multiple streams of recurring income now they're just trying to build them is wherever you can, you know, build a bit of a buffer so that you're covered for whatever period of time is important to you. Six months, 12 months, two years, whatever it would be so that your life is still okay. It respected You feel the pain but you won't be devastated. Mm hmm.
Unknown Speaker 50:04
Say hello to a few new people that have jumped on allow to silver Hello peacocks and Hello, Marty, good afternoon to you as well. And Rupert, one of our founding members just commented, you know, as a landlord, this is a time to start thinking creatively and actually, you know, how can you help your tenants if they genuinely are suffering and struggling at the moment? And just that communication element, you know, just communicate, understand, you know, from each side? Yeah, yeah. Okay, so business. I mean, there's no doubt we're not under estimating the situation that's going on out there. And it's incredibly difficult for so many people, and it potentially is going to get a lot lot worse. Yeah, it's time to really get lean, isn't it if you're a business owner as much as possible?
Unknown Speaker 50:48
Well, I think it's something to be said about being lean, but it's difficult to be lean if you're not living already, right. So if you've already got substantial overheads, and you're in a position where you have To the overhead, understandably, businesses are going to do everything in their power to maintain some kind of flow of money into their business to to keep their business alive. And I think for many people would survive as the only thing that's on their mind for the next period of time. However, if you have the opportunity to stay lean, and where you can be flexible, you could work from home, instead of working from an office, you can cut down your costs. You can think about things. But two things to keep in mind with businesses is twofold. One is, you know, business is a way of building wealth, but it only builds wealth. If you're creating accounting income sources, it's not a way of building wealth, if you're just trading time for money, but in a different vehicle, and this is a big challenge that most business owners in the UK with their own five Mark question. The vast majority of them are simply trading time for money but in a vehicle that takes their life away in many cases, and they're not meeting payroll that they're not balancing their time and life balance and you know, they're creating Just themselves look and I understand that right now they're in survival mode. But if you're in business or thinking owned business, it's still a wonderful opportunity, if you can find ways to create value for people that they will pay for on a recurring basis, and that's the skill. That's the real skill because it serves you twice what it serves you because you've got money coming in to meet payroll to meet your overheads as you grow that business, then and secondly, and of course, it makes you feel safer. And secondly, it gives you an incredible value to the business because minute most business valuations are gone down massively, because all business acquirers are looking at this through the lens of risk. And the way that you operate that risk in business is to have two things, you know, on you on your agenda. So think about these two things. At every stage if you're thinking about creating a business as part of your wealth building activity. One is to create an enterprise not a business, which means a business that works without you. And pretend we will speak loudly with that as an action coach who, whose company provides that logic very well very easily. And secondly is to create streams of recurring income so that if the business doesn't need you to be in it and you're creating income that doesn't depend on you doing that the selling the marketing, the shipping the humping all the things businesses have to do. If you can do those two things, then the business can work without you. And if the business works without you and you can create a high level of predictability, that's why acquire as much and the multiple achieved for for from acquiring businesses, when there's a high level of recurring income. And a low level of dependency on the business owner is can be three, four or five times a multiple of a business as simply trading activities for money. So think about that will take time to think about if you're going to get into business, can you find ways to do those two things That's the two key things you need to do everything else, you know, is there any of you anyone is really well, I mean, what else to do? Is anybody asked me a question specifically about being in business? Or am I just
Unknown Speaker 54:14
saying question at the moment? No.
Unknown Speaker 54:16
And, I mean, reaching out to your clients as
Unknown Speaker 54:19
much as you can as well and just, you know, again, communication, and finding out what they need, how you can help them maybe in in different ways as well.
Unknown Speaker 54:29
I think certainly using technology to to stay that without leaving outlook and be able to reach out to people because I suppose traditionally, most people have done business face to face, okay. But the use of technology, go to meetings, zoom, all sorts of different things. You can have much more meetings and you can create a new paradigm. I remember when, you know, we started using GoToMeeting, which was when I quit To the FAA in 2006. And we put on 100 million pounds worth of value in terms of funds, but we didn't meet anybody. We did everything through GoToMeeting. So we said, you know, the reason why we're using this technology is because it drives the cost down because there's no point you pay me to be in my car to come and see you. So if I use this technology, it's going to drive better value for you. So what do you want me to do? Are you happy to come on? This was a long time ago, right? So are you happy for me to save you costs or would you rather Meet me in person and pay a higher price and most people said I'd rather have these technology. And now everybody's using technology and Facebook and Facebook Live and, and all sorts of different ways of using technology that will only improve to be able to not just have meetings like this, but but streaming much bigger meeting so that you know, as you expand into the IP section, you've got many ways to to get your IP out there. And speaking to your opponent presenting is a good one. Being in business and having customers is I saw Daniel Priestley do a great I think it was a Facebook Live the other day. And I give him, you know, complete credit for this sort. And I think he's absolutely right, is that when you get a spike of of devastation like we have now and if you imagine, you know, trying to get the camera right, now you've got a spike of activity, which is causing everybody panic and worry, you know, they're going to go one side or the other side of that, on the one side, they're going to run for the hills because they're dealing with shit. And they have to clean it up. And that's you can't chase them. You have to let them go do it, you know, there's nothing you can do. You must not discount your way to try and get him back. You can't have a conversation with somebody meaningfully when they're in real difficulty. But there are many people. And definitely I found that even the last two weeks, that people who will kind of maybe thinking about mentoring and thinking about their wealth have seen what's happening. said, you know, I'm never going to let this happen again, I need that guidance, I need that. That mentorship now and they're willing to pay, you know, a premium price for it because they can see the real value that will be added to them in the long term. And so we're not having any, we're having a few people on SAS is deferring because the stock market and they want to keep their powder dry. And I understand that, but we're having an uptake in the mentoring, because people want that solution. So think about those people who will value you more highly, who fall on one side, and look for those rather than those people who fall on the other side, who will be just, you know, running to take care of the mess that they've unfortunately found themselves in because of the way this is impacting on their business. And that's, that's really all you can do, and as well as let people know, as we do, and I'm so pleased the spirit of community being blossoming out of the weeds of this sort of problem. material that I hate to see. And I'm seeing more and more good stuff happening is just make more phone calls to build Steven Covey's point, which is the emotional bank account is let people know that you absolutely care. And it's not about profiteering yourself or promoting yourself, you're just saying how you get along? And how you affected by this, can we do anything to help you at all, and, you know, allocate some time every, every week to be able to make some of those calls. And I've stepped that up in recent days. And maybe some people on this have either seen the text from me, but a call from me, but I've been making a lot of calls just to let people know we're here. And if they're thinking something, but they're not coming on meetings like this, they're not sharing their thoughts, that kind of self isolating their thoughts, because we want to try and get them to share this.
Unknown Speaker 58:45
Yeah, yeah. And if we can help with with any of the online tools, I mean, I've been running online business for five years. And you've just mentioned the use of Go To Webinar. goto meeting is just one of those tools, but project management, communication, any of those things. Now, if you've been thrown into suddenly a very different pattern of working, and you're not quite sure what the best way is of keeping in touch and keep on top of everything, and you know, if we can help share some of the things that we've been using, then be happy to do that. And of course, in the community, if anyone else has got any tools, please do share that. And so moving for we thought we might do 20 minutes here, but I can see it's 50 minutes on the clock already. But people people are still watching. Thank you. So, you know, hopefully.
Unknown Speaker 59:31
So yeah, IP should do IP. So you know, it's really a story. Yeah, I mean, take take a leaf out about Shakespeare's book, you know, and if you've got some more time than you had before, think about now starting to capitalise on that and start to capture your own IP. And how you do that. There's probably three different ways you could do that. One, is just take stock of where you add value and if you haven't done it for a little while. Work out Where your best value is added to the world. And that's often not evidenced in your own head, but by other people telling you you're outstanding and doing things. You're really great at this or people comment on this or that and then you know, you've got a real sense as you stop and think about where your true value is reconnect with your wealth dynamic. Try and have a look at where your path of least resistance would be. And if you didn't do your dynamic, go back and do it. And if you haven't done that Google wealth dynamics, do you have dynamic test, the other thing you could do is begin to think about recognising and this is a really exciting one to reconnect with your reason why and almost imagine that you've got the pillars. But over arching all of the pillars, you know, going back to that helicopter view, is your wealth plan and your wealth plan. Think about giving it a name. We talked about what well being as an example or whatever the name is, just Think about the story of your wealth and what it's going to mean for the generations that will follow that you are literally the pioneer and pioneers put up with stuff don't they or pioneers put up with hardship This is just one of those, but you're going to power through because the reason why is really strong reconnect with that reason why and then start to think about that Plan and Document it in some kind of a journal that you'll begin to say, you know, in 2020 remember the corona virus remember this remember that you're documenting what you decided to do so that when your kids and your grandkids and talk about a granddad tsunami You know, when you have all of those things, then you know, you're creating a story that will keep you going forward no matter what's going on because you're documenting the lessons for your own family and for the people to follow them. I think that's very important.
Unknown Speaker 1:01:59
Yeah. Yeah. Okay, so should we wrap it up with joint ventures pillar number seven. So, you know, not so easy to be out there working at the moment we're seeing lots of networking moving online, you don't want to be shaking too many people's hands at the moment.
Unknown Speaker 1:02:15
Now these are properly disinfected and before we sat down together, and
Unknown Speaker 1:02:22
we have bumped anything at all, we should be two metres apart. Not gonna happen today. Look after cell phones. I don't mind it was caused by you. But the issue with joint ventures is, you know, joint ventures are really about collaboration and the power of one. And you don't have to necessarily have to be spending time face to face with people if you've got technology. But if you've also got the due diligence of the trust, and the collaboration of other people that you trust, so for example, many of our students with members with sasses for example, Look, I've got more money than I can deploy. I don't have enough connections to make this money work. Where can I go to get those connections? Well, they'll often come to me for that. Because over the course of my two many years account, I've built up an incredible source and sources of connection and collaboration. And some people on the call will testify to that. Certainly, Chris Henry had an outstanding one, which we got right from day one. And you know, that circle of relationship that he had is led to them now doing joint ventures together. So you don't need many people to create wonderful joint ventures you just need to be being in the process of being willing to engage people to trust people, but still do the DD and again, we can help with a DD except you can just mean stopping BJ DS and you might not be going to networking meetings and you might not be coming to training courses to bump into people but you can participate in things like this. You can participate in a bubble in the community, you can participate in the SAS large community. And you can talk to us if there's anybody that you're looking for that you see an opportunity, but you just don't have the bandwidth yourself. So it's combination of bandwidth other people's contacts needed. Hmm. Okay, great.
Unknown Speaker 1:04:19
So thank you all for watching. I guess just to wrap it up for those that maybe weren't here at the beginning. You know, you've talked about your catalyst being back in 1995, obviously, with your, you know, your father, but then almost reignited 1012 years ago in 2008 by the downturn and you know, sometimes people need a catalyst and sometimes
Unknown Speaker 1:04:39
more than one that keeps you going like a booster, you know, so, unfortunately, my dad died very young. But he was a business owner but didn't act like a business owner in the sense that he didn't have streams of recurring income. We didn't protect his family didn't have a world. He didn't do some things that people shouldn't do. really wide because you didn't have time. And this is the big thing I think more than anything else. This current situation should afford us more time. And use the time wisely to take stock of what you're doing. reconnect with the reason why plan your strategy when you pillars don't get caught up with just repeating the same pillars if you can't, because you're affected by what's happening. If whatever pillar you're in diversify with each pillar, what you can do, because you're multiple pillars don't get overwhelmed. Because you can always come back and talk and share with a coach or guide or mentor, whatever or just with each other in the community. So I will just keep doing that and use the time that you've got now, to reinvent yourself for the next phase and never ever, please never let this sort of thing damage you financially. We can keep ourselves safe as far as we can. Physically, financially, we have to do it for ourselves.
Unknown Speaker 1:06:07
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk slash membership right now for free access. That's wealth builders.co.uk slash membership